Lenders consider construction a high-risk industry, which can make it tricky to get the financing your business needs. However, there are still loan options available to construction companies that can help your business grow, purchase equipment or materials or overcome short-term cash flow needs. The lenders on this list offer competitive rates, terms and loan amounts and welcome construction businesses.
Lendzi is a business loans marketplace, with plenty of options for construction companies, including term loans, lines of credit, equipment financing and more. And it has a highly rated and knowledgeable staff that can help you choose the best loan for your business. It doesn't disclose rates, fees and loan terms on its site, but that's likely because those factors vary depending on the lender and type of loan.
Loan amount
$5,000 – $20,000,000
APR
Varies by lender
Min. Credit Score
580
Lendzi is a business loans marketplace, with plenty of options for construction companies, including term loans, lines of credit, equipment financing and more. And it has a highly rated and knowledgeable staff that can help you choose the best loan for your business. It doesn't disclose rates, fees and loan terms on its site, but that's likely because those factors vary depending on the lender and type of loan.
Pros
Wide variety of loan options
Excellent customer service
Fast funding possible
Cons
Doesn't disclose rates and fees
Some loan options may be expensive
Could receive unwanted marketing materials
Loan amount
$5,000 – $20,000,000
APR
Varies by lender
Min. Credit Score
580
Loan term
6 months to 25 years
Requirements
Minimum credit score of 580, minimum annual revenue of $120,000, preferably one to two years in business
TD Bank is an SBA preferred lender, meaning it can make credit decisions without the SBA's approval and fund your construction business loan faster. It offers multiple types of SBA loans, including 7(a), 504 and SBA Express loans, and it also has USDA loans up to $25 million. It doesn't list its rates, but most SBA loans are capped at about 15% — much lower than most lenders' maximum rates. But the loan process can be quite a bit slower than online lenders, for example, and may require a down payment or collateral.
Loan amount
$10,000 – $12,000,000
TD Bank is an SBA preferred lender, meaning it can make credit decisions without the SBA's approval and fund your construction business loan faster. It offers multiple types of SBA loans, including 7(a), 504 and SBA Express loans, and it also has USDA loans up to $25 million. It doesn't list its rates, but most SBA loans are capped at about 15% — much lower than most lenders' maximum rates. But the loan process can be quite a bit slower than online lenders, for example, and may require a down payment or collateral.
Pros
Competitive rates
High loan amounts
Multiple loan options
Cons
Not a type of fast funding
May require a down payment or collateral
Need to meet SBA loan requirements
Loan amount
$10,000 – $12,000,000
Loan term
36 to 60 months
Requirements
Have assets to use as collateral, realistic business plan, talk with a loan officer in person
Pinnacle Funding welcomes construction businesses and offers term loans up to $5 million. It doesn't perform a hard credit check, so there's no impact to your credit, you could get approved or funded in under 24 hours and it only requires a 525 credit score to qualify. But it doesn't disclose its rates and fees, and its terms are on the short side compared to many other term loans.
Loan amount
$5,000 – $3,000,000
APR
Varies by loan type
Min. Credit Score
525
Pinnacle Funding welcomes construction businesses and offers term loans up to $5 million. It doesn't perform a hard credit check, so there's no impact to your credit, you could get approved or funded in under 24 hours and it only requires a 525 credit score to qualify. But it doesn't disclose its rates and fees, and its terms are on the short side compared to many other term loans.
Pros
Term loans up to $5 million
Funding possible within 24 hours
No hard credit check
Cons
Undisclosed rates and fees
Short loan terms
Requires at least $180,000 in annual revenue
Loan amount
$5,000 – $3,000,000
APR
Varies by loan type
Min. Credit Score
525
Loan term
6 months to 2 years
Requirements
6+ months in business, 525+ credit score, $180,000 in annual revenue
Lendio is a business loans marketplace with multiple equipment financing options for construction companies. It offers competitive rates as low as 7.5%, a wide range of loan amounts and has fairly lenient requirements to qualify, including only a 520 credit score. But rates could get high if your credit isn't the best, it requires at least $50,000 in monthly revenue and you may need a down payment with some lenders.
Loan amount
$5,000 to $5 million
APR
As low as 7.5%
Lendio is a business loans marketplace with multiple equipment financing options for construction companies. It offers competitive rates as low as 7.5%, a wide range of loan amounts and has fairly lenient requirements to qualify, including only a 520 credit score. But rates could get high if your credit isn't the best, it requires at least $50,000 in monthly revenue and you may need a down payment with some lenders.
Pros
Compare multiple options with one application
Rates as low as 7.5%
Funding as soon as same-day
Cons
May need a down payment
Requires $50,000+ in monthly revenue
Rates and loan amounts vary depending on qualifications
Loan amount
$5,000 to $5 million
APR
As low as 7.5%
Loan term
1 to 10 years
Requirements
520 credit score, $50,000 in monthly revenue, 0–12 months in business
For construction companies with outstanding invoices, a factoring company like altLINE can provide you with a flexible form of financing by purchasing your unpaid invoices for cash up front. There's no minimum credit score requirement, it could advance as much as 90% of an invoice's value and it offers funding as soon as the same day. But it is one of the pricier forms of business funding, and rates get higher the longer your customers take to pay their bills. It also requires a Uniform Commercial Code (UCC) filing to secure the invoices.
Loan Amount
Up to 90% of outstanding invoices
Fee for Terms
1% to 5%
For construction companies with outstanding invoices, a factoring company like altLINE can provide you with a flexible form of financing by purchasing your unpaid invoices for cash up front. There's no minimum credit score requirement, it could advance as much as 90% of an invoice's value and it offers funding as soon as the same day. But it is one of the pricier forms of business funding, and rates get higher the longer your customers take to pay their bills. It also requires a Uniform Commercial Code (UCC) filing to secure the invoices.
Pros
Advances up to 90% of the invoice value
No minimum credit score requirement
Fast funding
Cons
An expensive form of financing
Rates increase the longer customers take to pay
Requires a UCC filing
Loan Amount
Up to 90% of outstanding invoices
Fee for Terms
1% to 5%
Loan Term
Typically 30 to 90 days
Requirements
Invoices to factor, creditworthy customers, accounts receivable aging report
OnDeck offers business lines of credit (LOCs) to construction companies for up to $200,000. The credit lines are revolving, so your balance replenishes as you repay it. This setup can be useful for construction firms that need flexible access to cash, but don't need a large lump sum. It has relatively lenient requirements to qualify, but rates can be steep if you don't have excellent credit, and LOCs typically charge fees on top of interest.
Loan amount
$6,000 to $200,000
APR
35.9%
Min. Credit Score
625
OnDeck offers business lines of credit (LOCs) to construction companies for up to $200,000. The credit lines are revolving, so your balance replenishes as you repay it. This setup can be useful for construction firms that need flexible access to cash, but don't need a large lump sum. It has relatively lenient requirements to qualify, but rates can be steep if you don't have excellent credit, and LOCs typically charge fees on top of interest.
Pros
Flexible form of financing
Credit limits up to $200,000
Fast funding possible
Cons
Rates can be high
LOCs typically charge multiple fees
Longest term is 24 months
Loan amount
$6,000 to $200,000
APR
35.9%
Min. Credit Score
625
Loan term
12, 18 or 24 months
Requirements
1 year in business, 625 FICO score, $100,000 in annual revenue, business checking account
Methodology: How we choose the best construction business lenders
Finder’s editorial experts review dozens of business loan providers before selecting the best lenders for construction companies and contractors. We pick lenders that have loan options for construction businesses, good customer service and competitive rates. We also review each company’s Better Business Bureau (BBB) reviews and Trustpilot ratings.
We weigh lenders and financing companies against these factors:
Time-in-business requirements
Annual revenue requirements
Willingness to work with new or risky industries
APRs
Fees, such as origination fees
Loan amounts
Repayment terms
Credit score requirements
Turnaround time
State availability
Application process
Lender reputation and customer reviews
How to choose the best type of construction business loan
Finding the right construction loan starts with matching the type of financing to the problem you’re trying to solve — then comparing lenders to make sure you’re getting the best deal.
Start by narrowing down the right loan type:
Need heavy machinery? Look at equipment loans.
Cash flow issues? A business line of credit or invoice factoring can help smooth gaps.
Need funding to finish a specific project? An SBA Contract CAPLine may be your best fit.
Need money fast? Short-term loans or lines of credit typically offer the quickest turnaround.
Prioritizing low rates and fees? SBA loans usually offer the most competitive pricing, but expect a longer application and funding timeline.
Keep in mind: Construction is considered a higher-risk industry, so approval can be harder. Before you apply, double-check that your business meets the lender’s minimum requirements.
What to compare between construction loan lenders
Once you’ve found the type of business loan you need and lenders that work with construction companies, compare these key factors to find the lender that offers the best terms.
Loan type. Some lenders offer multiple financing options, while others specialize in a single area. Make sure the lenders you’re comparing have the type of funding you need.
Rates. The interest rates for construction business loans vary widely depending on the loan type and the lender — look around to find the best deal.
Fees. Some lenders charge fees on top of interest, so be sure you understand the total cost of the loan.
Turnaround time. Think about how soon you need access to capital. For example, SBA loans typically have some of the most competitive rates, but they can take weeks or months to fund.
Loan terms. Business loan terms can range from months to years, which also affects the size of your repayments. Consider how long you’ll reasonably need to repay the loan to help you decide on the best loan term for your business.
Lender requirements. Every lender has minimum criteria you must meet to qualify for financing. Find out before you apply to avoid any unnecessary dings to your credit.
Types of construction business loans
Here’s a breakdown of the most common types of business loans, how much you can typically borrow and what they’re best for.
Retail businesses or others that have a lot of credit card sales
What is a construction business loan and how does it work?
A construction business loan is the same as financing for other kinds of businesses, except the lender specifically works with owners in the construction industry. You might use one to purchase heavy equipment, move your office to a larger location or cover cash flow gaps during seasonally slow periods.
Not all lenders work with risky industries like construction, but you can still find them at banks, credit unions and online, with options for short or longer loan terms. And, like most types of financing, you’ll need to meet basic criteria such as minimum time-in-business, credit score and revenue requirements.
Pros and cons of construction business loans
Pros
Opportunities to expand your business
Meet working capital needs
Purchase or finance new or used equipment
May build business credit
Cons
Taking on new debt can be risky
Rates and fees are higher for some loan options
Must meet lender requirements
Compare other construction business loans
Consider these lenders that may have other options to finance your construction business.
We currently don't have that product, but here are others to consider:
How we picked these
What is the Finder Score?
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Lenders typically look at your credit score, revenue and how long you’ve been in business. To get a construction business loan, you’ll need to meet or exceed the lender’s minimum criteria to qualify.
Credit score. Traditional banks tend to require good credit from business owners — typically 670 or higher. But online lenders often allow scores as low as 580, or even less, for some loan options like invoice factoring.
Revenue. Every lender has different revenue requirements, but around $10,000 a month is pretty standard for many online lenders. Even if you don’t bring in that much, you still have options.
Time in business. Some lenders only require six months in business, but a construction business loan could be easier to get if you’ve had at least two years of experience.
How to apply for a construction business loan
Researching and preparing for your loan application will give you the best chance at loan approval.
Define your business goal. Be clear about what you hope to achieve with your loan funds and how much you’ll need.
Check your budget. Determine how much you can afford in repayments each month by calculating your loan payments to make sure they fit in your budget.
Know your score. Check your credit score to see which lenders you might qualify for.
Compare lenders. Be sure to compare multiple lenders and consider interest rates, fees and terms to find the best deal. It’s also good to check their minimum requirements to qualify.
Prepare your documents. What you’ll need to submit depends on the lender, but you’ll typically need to provide basic financial documents like bank statements, tax returns and profit and loss statements.
Apply. Fill out the loan application, submit your documents and wait for a decision. If approved, be sure to review your contract before signing.
Frequently asked questions
The average business loan rates vary widely depending on the lender and the type of loan. For example, bank term loans could start as low as 7%, whereas factoring can equate to double-digit APRs.
Maybe. Some lenders may be reluctant to provide certain types of loans to a startup construction business because of the risk. However, if what you need is equipment to get going, you might have better luck, because the equipment secures the loan, lowering the risk for the lender.
Yes! You're still a business even if you're the only employee. But you'll still need to meet lenders' minimum credit, revenue and time-in-business requirements.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf.
See full bio
Term loans, lines of credit and real estate loans for established businesses.
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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